Study Identifies Secondary Packaging Outsourcing Trends

The recently completed 2009 Secondary Packaging Outsourcing Report, sponsored by third-party logistics company Saddle Creek Corporation, showed more than 200 of the 500 survey respondents outsource secondary packaging. Respondents to the on-line survey outsource secondary packaging services such as assembly, fulfillment, cartoning, point-of-purchase displays and bundling. Increased flexibility and reduced costs are two top reasons given for outsourcing.

Research highlights include:

Nearly half (41.1%) of respondents outsource some or all of their secondary packaging services.

A significant number of these companies (34.6%) outsource 75% to 100% of their secondary packaging services..

A quarter of respondents (24.4%) who already outsource expect to increase their outsourcing of secondary packaging "somewhat" or "substantially" in the next 12 to 18 months. Roughly half (53.7%) expect their level of outsourcing to stay the same.

"Increased flexibility" (64.5%) and "reduced costs" (62.1%) are viewed as the top two benefits of outsourcing by respondents who currently outsource.

Roughly a third of respondents who outsource feel it would be "valuable" or "very valuable" if their provider offered integrated logistics services such as warehousing, distribution, and transportation as part of the packaging service offering.

Manufacturers are recognizing the value of outsourcing their secondary packaging services in order to move products to market as efficiently and cost-effectively as possible," said Robert Pericht, senior vice president of warehouse operations at Saddle Creek. "The research confirms what our customers have seen firsthand - a strategic decision to outsource can make a significant impact on supply chain efficiency."

For a copy of the 2009 Secondary Packaging Outsourcing Report: www.saddlecrk.com/pkg (registration required)